Hi All,
I think I found a very good pre-foreclosure in Vancouver. But as I am a beginner, I need your wisdom to tell me the honest truth on this one. I haven’t seen the house yet, but I took a look to the title and talked with the lady.
- Asking price: 370
- Estimated value: between 360 and 390 (their estimatation)
- Mortgages:
- 1[sup]st 205000, paying 1000 PI
- 2nd[/sup] 32000 paying 375 PI
- Need Repairs: “it needs new flooring, sink and cabinet in the bathroom and stair railing”
- Apparently not listed
- They owe three payments
- Their redemption period finishes in May 2010
- It has 4 bedrooms
She said she might be open to the possibility of waiting for her money, asked me for how long and I just replied vaguely “for as long as it takes me to sell your house”. I can see several options here, after I fix it and stage it (20K?) :
My questions are:
- Should I present multiple options?
- Should I go for Lease Sandwich Option instead of AFS plus TB?
- Lets assume they fight hard for their equity, what’s the highest amount you would pay to make it a profitable deal?
I will see the property before the BC REIN meeting tomorrow.
Thanks a lot in advance!
Miguel
I think I found a very good pre-foreclosure in Vancouver. But as I am a beginner, I need your wisdom to tell me the honest truth on this one. I haven’t seen the house yet, but I took a look to the title and talked with the lady.
- Asking price: 370
- Estimated value: between 360 and 390 (their estimatation)
- Mortgages:
- 1[sup]st 205000, paying 1000 PI
- 2nd[/sup] 32000 paying 375 PI
- Need Repairs: “it needs new flooring, sink and cabinet in the bathroom and stair railing”
- Apparently not listed
- They owe three payments
- Their redemption period finishes in May 2010
- It has 4 bedrooms
She said she might be open to the possibility of waiting for her money, asked me for how long and I just replied vaguely “for as long as it takes me to sell your house”. I can see several options here, after I fix it and stage it (20K?) :
- BUY CASH. I would offer 253 ( ARV *0.7 – repairs ), but I think they would wait until May. Although I have nothing to loose if I just ask.
- AGREEMENT FOR SALE AND TENANT BUYER. Where I could be offering to pay them what they owe to the bank (she said I might need $4000 to $9000). Pay for repairs and staging and take care of their payments (maybe $1670 PITI). Then I would find a tenant buyer I will ask 10K for down payment, 1800 rent and maybe a $600 premium for around 24 months
AGREEMENT FOR SALE AND QUICK FLIP, where I just repair and fix it and put it in the market for $390,000.
LEASE OPTION? Is there any drawback if I do a sandwich option instead of option 2? It seems like if I go this path I wouldn’t have to pay property transfer tax ( I am in Vancouver ). - AGREEMENT FOR SALE AND TENANT BUYER. Where I could be offering to pay them what they owe to the bank (she said I might need $4000 to $9000). Pay for repairs and staging and take care of their payments (maybe $1670 PITI). Then I would find a tenant buyer I will ask 10K for down payment, 1800 rent and maybe a $600 premium for around 24 months
My questions are:
- Should I present multiple options?
- Should I go for Lease Sandwich Option instead of AFS plus TB?
- Lets assume they fight hard for their equity, what’s the highest amount you would pay to make it a profitable deal?
I will see the property before the BC REIN meeting tomorrow.
Thanks a lot in advance!
Miguel